Ford to cease manufacturing in Australia

For 1200 Australian car industry workers, and thousands more who rely on their handiwork, it's time to prepare for life without Ford.

The car maker's manufacturing operations in Australia will end in three years.

After that, the Ford Falcon - an iconic brand for more than 50 years - will never again roll off the assembly line.

About 650 jobs will be lost at Broadmeadows, in northern Melbourne, while 510 will be put out of work in Geelong as Ford's two Victorian plants close.

The decision marks the end of an era for Ford, which started making cars in Geelong in 1925.

Stunned workers, some employed by Ford for three decades, say they can't imagine working for anyone else.

Vehicle assembler Henry Fuller, 50, said his fellow workers in Geelong went silent, then some cried, when told the news, despite knowing the company had been in trouble for some time.

"It is still a shock, but we know now - the unknown was worse," he told AAP on Thursday.

"But don't get me wrong, even though we know, it's still bad."

Paul Boulos, 54, who's been working at Ford for 36 years, said he couldn't see himself at another company.

"I'm not sure if I can find another job outside of Ford," the father of five said.

In making the plant closure announcements, Ford Australia president and CEO Bob Graziano said on Thursday that the cost of making cars in Australia had become uncompetitive.

"Manufacturing is not viable for Ford in the long-term," he said.

Ford lost $141 million after tax in the past financial year, he said, with accrued losses of $600 million over the past five years.

But all entitlements would be protected for the 1200 employees affected, he added.

Victorian Premier Denis Napthine had spoken with Ford representatives ahead of the announcement, but was told there was nothing to government could do to change the company's mind.

"They said it's simply a matter of the cost of production here versus the declining market for their products," Dr Napthine told Fairfax Radio.

But Australian Manufacturing Workers Union national secretary Paul Bastian still held out hope the decision could be reversed.

"It's not too late for Ford in our view at all," he said, calling on the government to organise a crisis meeting with the company.

The federal government has given Ford hundreds of millions in grants over the past decade, including $34 million towards a production upgrade last year.

Former Victorian premier John Brumby said decisions Ford had made in its Detroit headquarters had negated the state and federal government's support for the company.

But Mr Graziano said the company did not need to return any taxpayer money, as it had fulfilled the terms of its agreement.

Prime Minister Julia Gillard quickly announced the government would provide an additional $10 million to the Automotive New Markets Program to support businesses and workers in the automotive supply chain upon learning of Ford's plans.

The Victorian government will also make a $2 million contribution to support the state's component suppliers.

Ford plans on rolling out new models of the Territory and Falcon from next year, before manufacturing operations close in October 2016 and the Falcon model is retired.

The company will continue to employ about 1500 people in Australia.

No decisions have been made on the future of the Ford motorsport teams or its premium car brand Ford Performance Vehicles.